Wednesday, October 31, 2018

Halloween Pop-ups Rule the Retail!

Why Halloween pop-ups suddenly possess so many dead retail spaces

This Washington Post article by Taylor Telford reports on how  Americans will drop about $9 billion in celebration of Halloween this year. Halloween's craziness and camp are fun precisely because they are temporary — and so are the stores that sell it to us.

Halloween pop-up stores benefit from people’s last-minute shopping tendencies and the flaws of online shopping, such as poor-fitting costumes and unreliable delivery, while landlords with dead retail space benefit from pop-ups' need for instant store fronts. It’s a win for landlords, who get a tenant that will pay higher rent for just two or three months of occupancy.

To read more on this article, click here...

Thursday, October 25, 2018

Quick-Serve Brands Performing in the Drive Thru

The 2018 QSR Drive-Thru Study

This recent article from QSR Magazine discusses how pressures on drive-thru performance, particularly speed of service and accuracy, have become ever more intense. The continuing importance of the outdoor lane is clashing with the fact that as traffic increases in the drive thru, service times are slowing down. 

To read the full article, click here...

Tuesday, October 9, 2018

STORES Magazine - 2018 Top 100 Retailers & Trend Breakdown

STORES' 2018 annual snapshot of the top 100 Retailers shows great stability, given the list has remained remarkably similar over the past couple of years.  This yearly list and trend analysis discusses some of the reasons why top-ranked, long-term retailers have remained in that position, including modernization and reinvigoration of their retailing strategies, and shows that despite all reports about changes in retail, movement is gradual. There are some good analyses here worth reading, regarding omnichannel marketing, bricks-and-mortar strategies and growth enhancement moves by the big companies. 

Read more here…

Friday, September 21, 2018

As Others Retrench, Discount Chains Grow

      Ross Dress For Less discount store

This article offers a handful of nuggets that break down why discounters are finding success against online shopping.  
  • Ross's average item price is only $10
  • 98% of Ross's goods are under $30
  • Online retail has trouble offering these prices for top brands and still making money
  • Ross and others buy excess inventory from top brands
  • Ross ships the inventory to stores or keeps it in warehouses to rotate through stores
  • Discounters appeal both to people who "need a bargain" & those who "want a bargain"
  • Both types of discount shoppers enjoy the "treasure-hunt" experience
  • Online retail has had a rough time replicating that experience
Discounters, also known as off-price sellers, keep expanding their physical footprints, even as Americans shop more online and most brick-and-mortar retailers pour cash into their digital operations. During an era of disruption, these companies have proved resilient and durable against competition from Amazon. For more on this trend, please see the CNN article. Article

Tuesday, September 11, 2018

NEW STORES - December'17-July'18

Please note, this list was compiled using a Google Alert for "new stores".  The list is not guaranteed to be complete, but serves as a reference for the retail real estate community.  My hope is that it will be useful to you in some form or fashion. At the least, it can serve as a sign of the activity in the market or spur ideas when leasing properties.  

If my colleagues and I can be of service, please don't hesitate to contact me at 484-417-2208.  I can also be found on Instagram and Twitter (@RobSamtmann).  Thank you.

Friday, August 31, 2018

End Tables, Ottomans...and Wine Bars?

Furniture Retailers Go to New Lengths to Draw Buyers, Support Mall Expansions, Luring Customers With Exotic Wildlife, Wine Bars

CoStar News: August 28, 2018 | Rob Smith

Bob's Discount Furniture

Bob's Discount Furniture is among the furniture retailers expanding across the country, taking space in malls and shopping centers.

A Gallery Furniture store in Houston features an indoor playground, exotic birds and a Capuchin Monkey enclosure. Some Jordan’s Furniture stores in Massachusetts have ropes courses and IMAX theaters. City Furniture in Florida opened a café and wine bar. And that's not all furniture retailers are doing to lure entertainment-loving millennial shoppers and support their expansions in malls and big-box stores. 

Other furniture retailers offer ice cream shops, pizza parlors and play areas for kids’ birthday parties. Many are using augmented and virtual reality so customers can visualize how a piece of furniture fits and looks in their homes...

"People are now making an experience out of furniture shopping," Moore said. "The forward-thinking furniture retailers who are innovative will survive."...

Those regional and local retailers are increasingly anchoring shopping centers and occupying former mid-sized big-box stores, giving real estate property owners and developers fresh options to fill space, Moore said.

"You used to see furniture stores clustered together in a so-called furniture row," Moore said. "Now you’re seeing them go into retail centers. Landlords are receptive to it. It creates more traffic, and a lot of that is impulse traffic."...

As industry trade publication Furniture Today reports, Walker Furniture will open a 65,000-square-foot superstore in Las Vegas next month and a 150,000-square-foot showroom next year. The RoomPlace will open three furniture stores in regional malls in Illinois and Ohio next year. One of those will be in an abandoned Sears department store.

Online furniture company Wayfair, based in Kentucky, is opening a 20,000-square-foot outlet, its first brick-and-mortar location. Houston’s Furniture Town will open a 40,000-square-foot store in a shopping center over Labor Day weekend, with plans for three more stores next year. 

Japan-based furniture retailer Aki-Home -- known as the Ikea of Japan -- said earlier this year it wanted to build 100 stores across the country. Bob’s Discount Furniture said it will open five more Southern California stores by Labor Day weekend, giving it 12 in the state and more than 100 overall. The stores are between 25,000 and 42,000 square feet.

The rise of e-commerce and the maturation of millennials --those between the ages of 22 and 37 -- are having "enormous impact" on the traditional furniture business, said Bill McLoughlin, Furniture Today’s editor-in-chief. The estimated 73 million millennials in the U.S. will surpass baby boomers next year as America’s largest generation, according to think tank Pew Research Center.

"The last huge growth spurt of retail furniture operations was the baby boom generation," McLoughlin said. "Now you have an even bigger demographic wave coming on. They’re going to drive the business for years to come."

E-commerce now accounts for 17 percent of all furniture sales, McLoughlin said, up from 12 percent two years ago. Even when a purchase is made online, the buyer typically visits a furniture store to check out the item before buying, analysts say.

Moore recalls moving into his first apartment with tattered furniture from his parents. That doesn’t happen as much anymore, he said.

Your grandma's or parents' furniture just doesn't cut it anymore," he said, adding that the millennial demographic is fundamentally altering the retail landscape for everything from furniture to apparel. "You want to sit on a sofa, feel textures and visualize what it will look like. You may research online but you're going to the store to buy."

Monday, August 27, 2018

Healthcare Real Estate Is Being Pulled In Multiple Directions

Matthew Rothstein’s article in Bisnow East Coast, on how healthcare is changing rapidly as an industry, brings up some interesting points on how the traditional model of decentralized primary care providers, specialist networks and inpatient hospitals has become obsolete. He points out that the current drive to make access to healthcare a simple, short trip for patients who may not have the time or ability to drive long distances is prompting healthcare providers to expand real estate footprints in an effort to keep up with the changing needs of America’s population.

To read more about the changes in healthcare real estate, click here: